Do Vanguard and BlackRock Have Too Much Power?

Chicago law professor Eric Posner argues that the concentrated power of some institutional investors is reducing competition

Haywood Kelly 14 December, 2017 | 10:00AM

Eric Posner is professor of law at the University of Chicago. Among his research interests is the question of the increasing concentration of ownership in corporate America, including the role of institutional investors.

I know who Vanguard is. I know who BlackRock is. But there are a lot of financial companies I’ve never heard of and that maybe I’d be nervous about giving them my money.

A recent paper he co-wrote with Microsoft economist Glen Weyl and Yale University economics professor Fiona Scott Morton proposes limiting the companies an index fund can own in one industry. Posner spoke to Morningstar’s global head of research, Haywood Kelly, and director of policy research, Aron Szapiro.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BlackRock Inc698.35 USD-2.34

About Author

Haywood Kelly  Guest Author

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